Capital

Low interest short term loans available to nonprofit organizations that help meet the housing needs of low and very low income households

The loans may be secured or unsecured depending on the proposed activity. BUILD Loan funds must be used for operating and program expenses incurred to create affordable housing opportunities for low and very low-income households. Eligible activities may include: 1) Development of single and multi-family units for homeownership or rental, 2) Construction, 3) Land Acquisition, 4) Site Preparation, 5) Pre-Development.

The purpose of the BUILD Loan Program is to promote the production, preservation, and rehabilitation of housing for low and very low income households.

Offers low-interest loans to finance building renovations in downtown area

Low-interest loan program offers up to $90,000 for building renovations based on established project evaluation criteria. The loan is amortized over a 20 year period at a three percent (3%) interest rate with a balloon payment due at the end of the tenth (10th) year. The Development Loan Program is offered for redevelopment projects within the Memphis Central Business Improvement District (CBID), which is bound by Crump Boulevard on the south, Danny Thomas Boulevard on the east, the Wolf River on the north and the Mississippi River on the west. The CBID extends through the Medical Center which is bound by Linden Avenue on the south, Watkins Street on the east, Poplar Avenue on the north and Danny Thomas on the west.

Designed to encourage commercial real estate development within the Central Business Improvement District.

Extends the term of the PILOT program for those who hire minority employees or contractors

All PILOT companies must file a Diversity Plan with the industrial development board, but those which meet or exceed all of the goals of the Diversity Plan may extend the PILOT by one or two years at the discretion of the Industrial Development Board.

Created to encourage the support and inclusion of minority, women, and locally owned small businesses in the economic development of the local community.

The maximum loan amount varies according to the type of project. In most instances, TVA funds should be used for the acquisition of fixed assets. Loans are typically below market rate, with specific rates to be determined on a case-by-case basis after consideration of the loan evaluation criteria. Program guidelines require that each TVA loan dollar leverage additional funding from other sources. The loan funds are primarily available to manufacturing companies and local nonprofit economic development entities. Loans can be used to fund the construction of new manufacturing facilities, expansion of existing facilities, and development of publicly owned industrial sites or buildings.

Established to stimulate economic development and leverage capital investment in the TVA power service area.

Provides below market rate loans to help implement projects that reduce energy use, improve cash flow and provide a new opportunity for growth

Financing is available for up to 100 percent of the costs for installing energy efficient technology, energy retrofits and renewable energy systems that will help them reduce energy consumption. Loans are offered up to 5 million dollars. Eligible projects include: Lighting, HVAC, Building Retrofits, Industrial Systems, Co-Generation, and Renewable Energy/Solar Projects.

Created to help businesses and industries become more energy efficient, so that they may increase their competitiveness and strengthen Tennessee’s economy.

Project must consist of the acquisition of land or the acquisition, rehabilitation, construction or improvement of affordable housing, typically multifamily residential units. Either at least 20% of the units in the Project must be rented to individuals whose income is 50% or less of the Median Gross Income for Memphis, or at least 40% of the units in the Project must be rented to individuals whose income is 60% or less of the Median Gross Income. Except for those Units rented to the elderly or handicapped, units must be rented either to tenants earning less than 150% of the Median Gross Income, or at a rental rate less than 30% of 150% of the Median Gross Income for Memphis.

Created to encourage new construction and substantial rehabilitation of affordable multi-family housing.

Provides expansion loans to established businesses with an emphasis on manufacturers and distributors

Loan proceeds may be used for any legitimate business purpose, including working capital machinery and equipment, property acquisitions and construction (building renovations ore leasehold improvements). To be considered, the business must be operating for at least 18 months and be in good financial standing. EDGE Impact Fund requires, at a minimum: 2009, 2010 and 2011 tax returns; year-end and current interim 2012 financial statements; and current business debt schedule. Loan size is $150,000 ? $2 million. Interest rates are based on floating, risk-based pricing. Fixed rates are available. Repayment terms vary based on use of funds (including refinance).

Created to promote the expansion of existing businesses, particularly manufacturers and distributors.

Tax credit of up to 50% of franchise and excise tax liability for purchasing, installing, or repairing industrial machinery

The credit applies to the purchase, installation and repair of industrial machinery as defined in T.C.A. 67-6-102. The credit also applies to the purchase and installation of computer, computer software and certain peripheral devices purchased in order to meet the capital investment thresholds of the Job Tax Credit. Any unused Industrial Machinery Tax Credit may be carried forward for up to 15 years. The percentage of Industrial Machinery Credit allowed is dependent upon the investment made during the investment period, from 1% to 10%.

Must be located within the footprint of a project meeting the $1 billion investment threshold and creating 500 or more occupational wage jobs. An integrated supplier or integrated customer locating within the footprint of such a project will qualify for a Job Tax Super Credit equal to $5,000 per qualified job with a 15 year carry-forward, plus an additional $5,000 per job each year for 6 years. The Integrated Supplier Tax Credit applies regardless of capital investment or number of jobs created.

The purpose of the Integrated Supplier and Integrated Customer Tax Credit is to expand the impact of large "anchor" projects by encouraging co-location of suppliers and customers.

Companies with a regional, national or international qualified headquarters facility in Tennessee may, with approval from the Commissioner of Revenue and the Commissioner of Economic and Community Development, convert unused net operating losses (NOL) to a credit against franchise and excise tax liability. The NOL credit is available only if the company is unable to use the NOL to offset net income during the current tax year.

Created to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.

Allows individual and corporate investors to receive a tax credit for making equity investments in Community Development Financial Insitutions

The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. Equity investment must be made in Community Development Entity certified by the US Treasury. CDIs provide investment capital for low-income communities or low-income persons.

Established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities.

Tax abatement of up to 90% of city personal and property taxes and 75% of county personal and property taxes for a maximum of 15 years

Amount of abatement is determined by capital investment, number of new jobs, average wage of new jobs, location of project, diversity plan, environmental plan, and industry. To be considered, companies must have a minimum capital investment of $1 million and hire add at least 15 new jobs at an average salary of $10 or more per hour. Retention PILOTs require a minimum capital investment of $10 million and the creation of at least 100 new jobs.

Created to alleviate the burden of start-up and relocation expenditures.

Financial incentive that freezes property taxes at the predevelopment level for a predetermined period of time

The PILOT Program is offered for redevelopment projects within the Memphis Central Business Improvement District (CBID) which is bounded by Crump Boulevard on the south, Danny Thomas Boulevard on the east, the Wolf River on the north and the Mississippi River on the west. The CBID extends through the Medical Center, which is bounded by Linden Avenue on the south, Watkins Street on the east, Poplar Avenue on the north and Danny Thomas Boulevard on the west. To be eligible for a PILOT, the value of the proposed building renovations, site improvements or new construction must be equal to or greater than at least sixty percent (60%) of the total project cost (property & building acquisitions costs or value, soft costs, proposed building renovations, site improvements and/or new construction). See application here: http://www.downtownmemphiscommission.com/documents/PILOT_Application.pdf

The PILOT program is a financial incentive that is designed to encourage commercial real estate development in and around the Central Business Improvement District.

Provides small businesses and entrepreneurs loans for creating and retaining jobs

Loans are based upon the borrower's needs, repayment ability, what the borrower is financing and confirmation that jobs will be created. Interest rates are determined by perceived credit risk and are two percentage points below the current prime rate with a floor of four percent.

Designed to boost local strategies that enable the community to invest in small businesses and entrepreneurial initiatives, encouraging the creation, retention, and expansion of jobs helping grow the local economy.

Rural Small Business and Entrepreneurship Loan Fund helps small businesses, specifically micro-businesses or micro-enterprises grow and maintain their businesses. Must be a business with fewer than 10 employees including the owners. Company must be located in rural Tennessee.

Established to provide an alternative source of capital to small business owners who can't get conventional bank loans and don't want to use credit cards.

A credit equal to 6.5% of the 7% state sales and use taxes available to emerging industries

Tennessee law makes a sales and use tax credit available to taxpayers that establish a qualified facility to support an emerging industry in Tennessee with a minimum capital investment of $100 million and the creation of at least 50 new full-time jobs paying 150% of Tennessee's average occupational wage. The credit is equal to 6.5% of the 7% state sales and use tax paid to Tennessee on the sale or use of qualified tangible personal property.

Created to promote the development of emerging, high-tech, and clean energy industries in Tennessee.

Credit of 6.5% of the 7% state sales and use tax for qualified headquarters

Credit for sales and use tax paid on qualified tangible personal property purchased for the headquarters during the investment period. The investment period for the sales and use tax credit begins one year prior to construction or expansion and ends one year after construction or expansion is substantially complete and cannot exceed 6 years. Note: The taxpayer must file and receive approval of the Qualified Headquarter Business Plan with the Department of Revenue before taking the sales and use tax credits.

Created to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.

Only counties with the lowest per capita personal income, the highest percentage of residents below the poverty level, and the highest annual average unemployment rates are eligible for this program. SOC loans are made for buildings, plant equipment, infrastructure, or real estate based on the capital investment leveraged and the number of jobs created by a venture. SOC loans can also be made to local economic development entities for capacity-building projects such as sites or buildings. View a map of the Special Opportunities Counties, here (http://www.tvaed.com/pdf/soc_counties.pdf).

Monthly power bill credits to qualifying power customers who contribute to the economic development of the Tennessee Valley

Award amounts based on capital investment, jobs added or retained, average wages paid, and annual load factor. Requires at 250-kilowatt peak monthly demand, and minimum of 25 employees with no plans to reduce workforce by 50 percent or more. Must commit to a projected five-year capital investment of 25 percent of an existing facility?s book value, or $2.5 million in a new facility. Requires standard power contract with a remaining term at least as long as the five- or eight-year VII award period.

Created to lower energy costs for companies that contribute to economic growth.